City council leader Ken Bodfish faced catcalls from angry refuse collectors and street sweepers as he addressed a full meeting of Brighton and Hove council last night.

Before the meeting demonstrators chanting "Bodfish out" gathered outside Brighton Town Hall.

Inside, Councillor Bodfish told refuse staff their conditions of service would be fair and reasonable when a new contractor takes over.

The council is involved in long and detailed negotiations with Serviceteam following the decision of Sita to pull out.

During a long statement to the council Coun Bodfish was interrupted by a stream of catcalls from refuse operators and street sweepers in the public gallery.

But he insisted: "We are being as open as we can bearing in mind we are in the middle of complex and sensitive negotiations."

The council boss said Brighton and Hove had faced a totally unsatisfactory situation this summer with refuse. It was trying to conclude a new agreement in three months when this normally took up to a year.

Coun Bodfish said: "Our intention is to get fair and proper conditions for the workforce."

He said there would be a full transfer of their rights from one employer to another including pensioners.

For those employees who had cashed in their pensions, the council would offer advice.

Coun Bodfish said talks were carrying over what the cost of the contract should be.

He added: "We are confident we will negotiate a service which will be good for the citizens of Brighton and Hove."

Earlier, as many as 200 people from the GMB and Unison unions and citywide voluntary organisations listened to speeches which openly criticised Coun Bodfish.

Labour Councillor Francis Tonks told demonstrators the council was ignoring "some very important community organisations" when "some crappy arts organisations had got money they shouldn't have".

His view was backed by voluntary workers protesting against the council's decision to withdraw funding from groups such as The Rape Crisis Project and the Women's Centre.

Chris Beaumont, from Hanover Community Association, brandished a banner reading "We are brill but we got nil". He said the Association had scored second highest of all the organisations in the city in the council's Best Value review but received no funding.

Gary Smith, GMB organisr, rallied a crowd of placard-waving Sita employees workers.

He told them: "The refuse and street cleaning contract is in chaos. We believe the tendering process was illegal. This is a crisis of Ken Bodfish's making. We are furious and disgusted with councillor Bodfish."

Councillor Rik Child declared: "I am ashamed to be a part of this bungling authority."

A Sita operative, who did not wish to be named, said: "This is the third transfer since waste was contracted out and every contractor has pulled out before their time so that just shows the system isn't working."

Unison area representative Alex Knutsen warned of massive job losses impending as a result of the council's imminent budget deficit.

He said: "The council is telling the public there is a £5.7 million overspend this year. We are saying it is about £8 million.

"They acknowledge they will have to cut some services already and they have already put a freeze on filling vacant positions in social services, education and housing. But that is just a drop in the ocean."